Tuesday, July 31, 2012

I'm normal

While browsing channels earlier, i came upon this show in ANC about money matters. The guy there talked about money personality profiles. Apparently there are 5:

  • Challenged – not enough money for expenses
  • Normal – enough money but no savings
  • Stable – has an emergency fund set aside (2 years worth of money in the bank)
  • Wealthy – P5M in the bank or (2 or more years worth of money in the bank)
  • Permanently wealthy - self explanatory

So, i fall under the normal profile. The fact is if someone dies or someone gets sick in the family, i'll probably be in debt. Scary. 

It's not that I earn so little. I just spend so much especially when i'm depressed which happens most of the time. And i don't do accountings. I have to start now. I want to go from normal to stable.

According to the guy, this should be the formula:
  • 30% of earnings should go to savings
  • 50% to basic living expenses
  • 15-20% for lifestyle expenses

Gotta start tomorrow!

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